Again, Google are dictating exactly what you can and can't do with page design.
No, they are passing an editorial value-judgement on white space. It's their algo, they're allowed to.
I imagine they did studies on user behavior and plotted it against white-space size/proportions and built the SIGNAL into their algo. Users don't like X amount of white-space, so users dont get served sites exceeding said value. Makes 100% sense.